The connection between Rupee crisis and India's elections

05 Oct 2018, 02:15PM ISTSource: GIST

Rupee hit another record low of 73.58 against the US dollar on Thursday, taking the fall so far this year to more than 13%. The last three crises for the rupee have come on pre-election years though the reasons have varied. 2018: It’s been one of Asia’s worst-performing currencies this year due to rising crude oil price, strengthening of the dollar against most other currencies and foreign investors pulling out of the market. 2013: Rupee had hit a record low. Similarity with the current crisis is that rising oil prices and emerging markets were a factor in rupee’s fall too in 2013. 2008: The epicentre wasn’t emerging markets, like now, but Wall Street. The global financial crisis hit Indian markets hard.